Cryptocurrency exchange Binance suffers from multiple misfortunes and is warned of illegal transactions by many countries

The Monetary Authority of Singapore (MAS), Singapore's central bank and top financial regulator, announced on Thursday that it has added Binance.com to its investor warning list. Binance has received warnings from countries such as the United Kingdom, Poland, Italy, Japan, Malaysia and Thailand because Binance trades in the above regions without being registered.

Binance is a blockchain ecological brand under Binance Holdings Limited, providing a trading platform for various cryptocurrencies, namely Binance.com. It was founded in 2017 and registered in the Cayman Islands. It provides a wide range of digital currency transactions, currency information, blockchain education, blockchain project incubation, blockchain charity funds and other services to the world.

Binance has a registered company in Singapore called Binance Asia Services PTE Ltd. Binance operates such subsidiaries in multiple countries, and the legal status of these subsidiaries is completely different from that of Binance.com. Binance Asia Services PTE Ltd is already registered with the Monetary Authority of Singapore and operates the Binance.sg cryptocurrency exchange platform.

Binance.sg operates in Singapore with its own local executive and management team, focusing solely on developing the Singapore cryptocurrency ecosystem and serving users in Singapore. According to records from the Monetary Authority of Singapore, Binance Asia Services PTE Ltd has been granted an exemption to operate a cryptocurrency exchange in Singapore without a license. However, the same exemption does not apply to the cryptocurrency global exchange Binance.com.

If a Singaporean user purchased a cryptocurrency asset with local currency (SGD) on Binance.sg and then sent it to the global platform Binance.com for trading, such an operation would be illegal under Singapore’s Payment Services Act.

Amid an ongoing dispute with regulators, Binance CEO Changpeng Zhao has stated his intention to make Binance.com a regulated financial entity. As a result, Binance has recently made some changes, including introducing mandatory Know Your Customer (KYC) requirements for new users and hiring more experienced regulators as leaders.

Despite this, Binance's regulatory woes continue to grow. Over the past year, Binance has come under intense scrutiny from financial regulators around the world. Countries such as Malaysia, the United Kingdom, the United States, Italy, India and Thailand have previously issued warnings that Binance.com provides financial services without a license and has been accused of operating illegally and violating securities market guidelines.

In order to improve relations with regulators, Binance has begun to appoint former regulators to key positions in the company. Just last week, Binance Asia Services PTE Ltd appointed a new leader as Richard Teng. He was the chief regulatory officer of the Singapore Exchange and served as corporate financial director at the Monetary Authority of Singapore.